PXP Energy enters into settlement on dispute with partner over Peru venture
Power

PXP Energy enters into settlement on dispute with partner over Peru venture

Bilyonaryo Manny V. Pangilinan-led PXP Energy Corp. will be paid $9.6 million to settle a dispute with its partner Karoon Gas Australia over their oil exploration project in Peru.

The amount is less than a tenth of the $100 million PXP originally sought from its Australian partner allegedly due to breach of obligations, including drilling a second well in Peru Block Z-38.

Pitkin Petroleum Ltd. (PPL), a 53.4 percent-owned subsidiary of PXP, has a 25% participating interest in Peru Block Z-38.

Under the deed of settlement, Karoon Gas has agreed to pay $9.6 million in cash to PPL in full and final settlement of all claims by Pitkin Peru and its associates in connection with Block Z-38.

The deed will be effective upon the receipt of the settlement sum by PPL within 3 business days upon signing of the deed.

Peru Block Z-38 was placed on force majeure from March 16 to November 27, 2020 due to the lockdowns imposed to curb the spread of COVID-19.

0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x